Shortly after the market closed on Wednesday, senior US trade officials announced new punitive tariffs on the European Union starting Oct 18.Analysts also cited a drop in US Treasury yields, often seen as a harbinger of economic slowdown.
Gorilla Trades strategist Ken Berman said the market's retreat reflects"intensifying recessionary fears," but added that the ADP jobs report still showed growth in most sectors. Stock losses were broad-based, with all 11 sectors in the S&P 500 finishing in the red and virtually all the blue-chip Dow index falling.
Airline stocks were especially weak, with Delta Air Lines, United Continental and American Airlines all down more than four per cent.General Motors sank 4.0 per cent after third-quarter auto sales missed analyst expectations amid a United Auto Workers strike now in its third week. Fiat Chrysler and Ford also fell following auto sales reports.